ORIX JREIT Inc. (8954) AI Stock Analysis

• Market Cap: ¥554.76B
• Dividend Yield: 3.78%
• Average Volume (3M): 6.11K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.15
• Revenue Growth: -17.31%
• EPS Growth: 15.83%
• Country: JP
• Employees: 70
• Sector: Real Estate
• Sector Strength: 54
• Industry: REIT - Office
• EPS (TTM): 3991.00
• Shares Outstanding: 2,760,000
• 10 Day Avg. Volume: 5,777
• 30 Day Avg. Volume: 6,111
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥219,954.00
• Price Target Upside: 10.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥219,954 ▲(10.09% Upside)

ORIX JREIT Inc. shows strong financial performance with effective cost management and operational efficiency. Technical analysis indicates robust market momentum, though caution is advised due to overbought signals. The valuation appears stretched, but the dividend yield offers some support. Cash flow management remains a concern, which slightly tempers the overall positive outlook.

ORIX JREIT Inc. Business Overview & Revenue Model

Company Description

OJR was established on September 10, 2001, and was listed and commenced trading on the Tokyo Stock Exchange on June 12, 2002 as the fourth Real Estate Investment Trust in Japan, or "JREIT," to be listed. A JREIT is an externally managed property fund formed under the Act on Investment Trusts and Investment Corporations of Japan. ORIX Asset Management Corporation, a wholly owned subsidiary of ORIX Corporation (TSE: 8591, NYSE: IX (ADR)), is the asset manager of OJR.OJR is a diversified JREIT that invests in office buildings, retail facilities, residential properties, logistics facilities, and hotels and others, aiming to provide stable cash flow and healthy asset growth over the medium to long term.

How the Company Makes Money

ORIX JREIT Inc. generates revenue primarily through rental income from its portfolio of real estate properties. The company leases out its office, retail, and logistics properties to various tenants, collecting rent as a steady income stream. Additionally, the firm may earn income from property management fees and other ancillary services related to its real estate holdings. ORIX JREIT Inc. benefits from its strategic partnerships with property developers and real estate management companies, enhancing its ability to optimize property value and rental yields. The company's financial performance is also influenced by the overall demand for commercial real estate in Japan, economic conditions, and effective cost management, which contribute to its earnings and ability to distribute dividends to its investors.

ORIX JREIT Inc. Financial Statement Overview

Summary

ORIX JREIT Inc. demonstrates solid financial performance with strong revenue growth and profitability metrics. The balance sheet shows a prudent leverage strategy, but cash flow challenges due to high capital expenditures need addressing to maintain liquidity.

Income Statement

ORIX JREIT Inc. has shown strong revenue growth, with a 7.1% increase from 2023 to 2024. The company maintains high profitability, exemplified by a gross profit margin of 52.9% and a net profit margin of 41.9% in 2024. Additionally, the EBIT and EBITDA margins are robust at 45.9% and 59.2%, respectively. These metrics indicate effective cost management and operational efficiency.

Balance Sheet

The company exhibits a solid balance sheet with a debt-to-equity ratio of 0.85, indicating a balanced approach to leveraging. The return on equity stands at 6.6%, showcasing decent profitability relative to shareholder investments. However, the equity ratio is 51.1%, suggesting moderate reliance on debt financing.

Cash Flow

Free cash flow has declined by 123.7% from 2023 to 2024, raising concerns about cash management. Nonetheless, the operating cash flow to net income ratio is strong at 2.55, indicating efficient cash generation from operations. The free cash flow to net income ratio is negative due to capital expenditures exceeding operating cash flows, which could impact liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.01B	55.01B	51.37B	49.86B	47.22B	50.93B
Gross Profit	28.71B	28.71B	24.83B	27.03B	25.55B	29.08B
EBITDA	33.03B	32.57B	29.55B	31.07B	29.63B	33.17B
Net Income	22.52B	23.05B	19.05B	21.13B	19.46B	22.90B
Balance Sheet
Total Assets	685.77B	685.00B	677.84B	682.98B	684.45B	678.68B
Cash, Cash Equivalents and Short-Term Investments	28.83B	21.15B	42.07B	50.41B	48.97B	46.20B
Total Debt	296.20B	297.09B	292.09B	294.54B	297.64B	290.92B
Total Liabilities	335.47B	335.18B	329.96B	332.30B	335.54B	328.85B
Stockholders Equity	350.30B	349.82B	347.87B	350.68B	348.91B	349.83B
Cash Flow
Free Cash Flow	-1.19B	-4.18B	17.63B	23.80B	16.17B	16.31B
Operating Cash Flow	38.90B	58.80B	36.61B	36.17B	27.19B	38.95B
Investing Cash Flow	-38.96B	-59.78B	-19.59B	-12.33B	-10.80B	-22.38B
Financing Cash Flow	-17.24B	-16.14B	-24.30B	-22.45B	-13.70B	-22.60B

ORIX JREIT Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 199800.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8954, the sentiment is Positive. The current price of 199800 is above the 20-day moving average (MA) of 196470.00, above the 50-day MA of 191616.00, and above the 200-day MA of 173696.34, indicating a bullish trend. The MACD of 2908.15 indicates Negative momentum. The RSI at 67.52 is Neutral, neither overbought nor oversold. The STOCH value of 64.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8954.

ORIX JREIT Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8954	72 Outperform	¥554.76B	24.63		3.78%	-17.31%	15.83%
Sector *	63 Neutral	$6.82B	13.21	-0.71%	7.17%	3.67%	-27.43%
JREIF	―	$6.17B	25.11	6.87%	3.69%	―	―
8958	76 Outperform	¥144.85B	21.96		4.32%	67.12%	0.19%
8976	75 Outperform	¥338.83B	24.00		3.88%	19.18%	-23.37%
8987	71 Outperform	¥189.92B	23.98		4.04%	-16.98%	1.05%
8975	70 Outperform	¥150.05B	16.18		6.23%	44.45%	40.59%

ORIX JREIT Inc. Corporate Events

ORIX JREIT Secures New Debt Financing for Loan Refinancing

ORIX JREIT Inc. has announced a new debt financing arrangement with the Development Bank of Japan Inc., securing a loan of 3,000 million yen at a fixed interest rate of 1.229%. The proceeds from this financing will be used to refinance existing long-term loans, maintaining the company’s interest-bearing liabilities and loan-to-value ratio unchanged. This move is part of ORIX JREIT’s ongoing financial strategy to optimize its capital structure and ensure stable financial operations.

The most recent analyst rating on (JP:8954) stock is a Hold with a Yen180000.00 price target. To see the full list of analyst forecasts on ORIX JREIT Inc. stock, see the JP:8954 Stock Forecast page.

ORIX JREIT Announces Investment Unit Split and Forecast Revision

ORIX JREIT Inc. announced a two-for-one split of its investment units to enhance liquidity and attract more individual investors, aligning with the new Nippon Individual Savings Account and Tokyo Stock Exchange guidelines. This move also led to a revision of the forecasted distributions per unit for the fiscal period ending February 28, 2026, reflecting the split ratio but not affecting the overall financial outlook due to minimal associated costs.

The most recent analyst rating on (JP:8954) stock is a Hold with a Yen180000.00 price target. To see the full list of analyst forecasts on ORIX JREIT Inc. stock, see the JP:8954 Stock Forecast page.

ORIX JREIT Inc. Completes Strategic Asset Disposition

ORIX JREIT Inc. has announced the disposition of its investment units in FJ Private REIT Corporation, marking the completion of its investment objectives. The decision to sell these units, amounting to a gain of 4 million yen, reflects the company’s strategic move to optimize its asset portfolio without impacting its earnings forecast.

The most recent analyst rating on (JP:8954) stock is a Hold with a Yen180000.00 price target. To see the full list of analyst forecasts on ORIX JREIT Inc. stock, see the JP:8954 Stock Forecast page.

ORIX JREIT Secures New Debt Financing with Sustainability Focus

ORIX JREIT Inc. announced new debt financing totaling 7,750 million yen, with loans from MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation. This financing includes a sustainability-linked loan, reflecting the company’s commitment to sustainable business practices. The proceeds will be used to refinance existing long-term loans, with no change in the company’s interest-bearing liabilities or loan-to-value ratio. This move is expected to support ORIX JREIT’s financial stability and sustainability goals, maintaining its position in the real estate investment market.

The most recent analyst rating on (JP:8954) stock is a Hold with a Yen180000.00 price target. To see the full list of analyst forecasts on ORIX JREIT Inc. stock, see the JP:8954 Stock Forecast page.

ORIX JREIT Inc. Announces Strategic Acquisition by ORIX Real Estate Corporation

ORIX JREIT Inc. announced that ORIX Real Estate Corporation, a subsidiary of ORIX Corporation, plans to acquire up to 55,200 investment units of ORIX JREIT. This acquisition aims to align the interests of ORIX JREIT’s unitholders with the ORIX Group and enhance the medium-to-long-term value of its investment units. The initiative is expected to strengthen sponsor support and clarify ORIX’s commitment to expanding its asset management business.

The most recent analyst rating on (JP:8954) stock is a Hold with a Yen180000.00 price target. To see the full list of analyst forecasts on ORIX JREIT Inc. stock, see the JP:8954 Stock Forecast page.